The Brand Challenge

Johansson, Johny K.; Ronkainen, Ilkka A.
March 2004
Marketing Management;Mar/Apr2004, Vol. 13 Issue 2, p54
This article addresses whether global brands are the right choice for a company. Many local brands are being evaluated according to their potential as global candidates or as examples of best practice that could be applied elsewhere. The bottom line for global companies is that there are not enough resources to go around to manage scores of local brands that are not truly different. Global brands, like any facet of global marketing, are supposed to benefit from the scale and the scope that having a presence in multiple markets brings. As global retailers gain more power, marketers may feel more pressure to have brands that can travel with their customers. Another justification for a global presence is fueled by the increasing similarity that consumers are displaying in terms of their consumption habits and preferences. Internally, global branding can be seen as a tool to tighten organizational relationships using the transfer of best practice in brand management, as well as programs like brand stewardship through brand management teams at headquarters or designated centers of excellence. Concentrating resources and efforts on a limited number of brands should bring about improved results.


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